Economist and Finance Lecturer at the University of Ghana Business School, Godfred Alufar Bokpin has criticised government over some measures it introduced in the 2023 Budget.
This comes in the wake of government’s new measures it expects to help revive the economy in the 2023 Budget, as read by the Finance Minister, Ken Ofori-Atta on Thursday.
In the budget, Government announced a cut in expenditure, especially among political appointees and state institutions. It also planned to increase revenue by raising the VAT rate by 2.5 % while also improving its revenue collection.
However, reacting to the measures on JoyNews’ AM Show, Prof Bokpin said government failed to show leadership with its 2023 Budget when it failed to cut down its humongous government size.
According to him, the increment in VAT rate would be a drawback that would rather restrict growth.
He noted that, instead of increasing the VAT rate, government should have explored inefficiencies within the existing tax size.
This he explained is because “studies have shown that when your VAT rate is within 18% or above 18%, it significantly inhibits growth. In other words, it becomes counterproductive”.
“If you look at it effectively, at the implication of the VAT and the treatment of straight levy, it effectively puts the VAT burden on the consumer in excess of 20%. What that does is to contribute to the high production cost base of doing business and actually defeat every attempt to build savings mobilisation,” he said.
He added that although the country is in crisis, the government must also have the citizens at heart.
“The pain becomes more bearable when you find that the burden sharing is proportionately above household and the private sector. The government makes that decisive point when it failed to show leadership in downsising and greater realignment of State Owned Enterprises,” he said.
- Woman ordered to refund $80k after she refuses to marry man who paid her fees
- Suspected food poisoning: Waakye kills 5 including pregnant woman
- Debt Exchange Programme: Government reaches agreement with Ghana Insurers Association
- Minority Leadership reshuffle an affront to dignity of NDC Caucus – Dr. Dominic Ayine
- Consultations are not mandatory – Dr. Spio-Garbrah on change in Minority leadership
- Haruna Iddrisu disclaims posts on Facebook, Twitter handles purported to be his
- Haruna Iddrisu, Muntaka Mubarak still leaders of Minority Caucus – Cletus Avoka
- Debt Exchange Programme: Jubilee House, EMT against inclusion of individual bondholders – Bright Simons
- Man butchered by unknown assailants at Krofrom in Ashanti Region
- DDE could be a positive turning point for Ghana – Alhassan Andani
- Joy Prime’s BMPS Show returns: Is flirting disrespectful to your partner?
- Debt Exchange: Ghana Insurers Association urges policyholders to remain calm
- Patience Ozokwor explains why she didn’t remarry after husband’s death
- KNUST findings cite reduction in green areas for increased flooding in Kumasi
- Develop a positive attitude – Apostle Nyamekye advises Ghanaians
- The Spanish town powered by waves
- GES commiserates with bereaved families of 8 drowned pupils
- Black Sherif bags 5 nominations from Soundcity MVP Awards
- 47th SWAG Awards gala set for Saturday, January 28
- Government reaches deal with Securities Industry Association to sign up for Domestic Debt Exchange
- No amount of petitions and press conferences can reverse NDC’s new parliamentary leadership – Ras Mubarak
- Climate change reporting shouldn’t always be about doom – Lecturer
- A sex scene with Jim Iyke almost got me expelled from university – Actress
- BBC News presenter gets emotional in last ever sign-off
- Kenyan court convicts Venezuelan diploma of murder